The U.S. Department of Justice recently reported that several defendants have pleaded guilty in a fraudulent digital asset investment scheme spanning China, the U.S., and Cambodia, involving up to $36.9 million.
The fraud group set up a base in Sihanoukville, Cambodia (commonly known as "Westport"), targeting U.S. citizens with a "pig butchering" scheme to induce investments, followed by cryptocurrency laundering.
Scheme Design: Fake Investments, Real Fraud
According to official investigations, the criminal group contacted victims through social media, text messages, and online dating platforms, falsely claiming to offer high-return digital asset investment projects. In reality, the victims' funds were transferred from U.S. accounts to Deltec Bank in the Bahamas, quickly converted to USDT (Tether), and flowed into the group's controlled wallets.
The entire fraud process is as follows:
Lead generation and inducement: Group members establish contact with U.S. citizens, instilling the concept of "stable returns";
False platform investment: Victims are induced to transfer money to platforms like "Axis Digital Limited";
Funds transfer and money laundering: Funds are transferred internationally to places like Cambodia, Westport via USDT.
"Axis Digital Limited" was founded by suspects Shengsheng He and Jose Somarriba, responsible for setting up financial channels; Jingliang Su, as a director, participated in funds management and transfer.
Involved Personnel: Multinational Background, Defined Roles
The following five individuals are listed as the main operators, each with distinct responsibilities:
Joseph Wong: 33 years old, resident of Alhambra, California, USA, core fund operator;
Yicheng Zhang: 39 years old, Chinese nationality, involved in money laundering conspiracy;
Jose Somarriba: 55 years old, American, responsible for financial channels;
Shengsheng He: 39 years old, Chinese-American, one of the heads of Axis company;
Jingliang Su: 44 years old, dual nationality of China and Turkey, role in funds management.
In addition, eight other suspects have pleaded guilty, including Daren Li, active in Cambodia and the UAE, and Lu Zhang, who overstayed in the USA.
Verdict and Impact: Up to 20 Years Imprisonment
Currently, Yicheng Zhang and Joseph Wong have admitted to conspiracy to launder money, facing up to 20 years; the other three are charged with operating an unlicensed money transmitting business, facing up to 5 years imprisonment.
Matthew G. Olsen, Assistant Attorney General of the U.S. Department of Justice’s Criminal Division, emphasized: "This case demonstrates our firm stance on combating financial fraud globally. No matter where the suspects are located, they cannot escape justice."
The case is led by the U.S. Attorney’s Office for the Central District of California, in collaboration with Homeland Security Investigations (HSI), the Federal Bureau of Investigation (FBI), and other law enforcement agencies. The case has now entered the federal district court for trial, and the final sentence will be determined according to sentencing guidelines.
